(Kitco News) - Gold and silver prices are moderately up in midday U.S. trading Monday. Some safe-haven demand has developed to start the trading week and some chart-based buying is also featured. Still, risk aversion is not highly elevated after the weekend U.S. military strikes on Iran’s nuclear plants. Reads a DowJones Newswires headline today: “Markets amazingly calm after U.S. attacks on Iran.” I’ve been a full-time markets watcher for 40 years, and I would call today “eerily calm,” as if something’s not right. August gold was last up $21.90 at $3,407.70. July silver prices were last up $0.213 at $36.235.
Some reports are now saying Iran is preparing to strike U.S. targets, which has helped put the mild safe-haven bid into gold and silver near midday.
Writes David Morrison of Trade Nation in a morning email dispatch: It was noticeable that there was no wholesale flight from risk assets during Monday’s session. The prevailing view appears to be that the U.S. involvement will prove limited, militarily, yet effective, by seriously undermining Iran’s nuclear ambitions. Investors are also speculating that Iran’s ability to retaliate has been severely restricted. The situation remains fluid. It’s currently unclear how successful the U.S. mission has been, and it’s uncertain if the U.S. action is set to continue. At the same time, there’s plenty of wild speculation over how Iran is likely to respond, assuming they are in a position to do so. Investors are taking an optimistic view.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are slightly higher and trading around $74.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently a around 4.3%.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $3,476.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the overnight high of $3,413.80 and then at $3,450.00. First support is seen at last week’s low of $3,356.20 and then at the June low of $3,313.10. Wyckoff's Market Rating: 7.5.
July silver futures bulls have the overall near-term technical advantage. However, a bearish broadening pattern has formed on the daily bar chart, which begins to suggest a market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.405. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $36.50 and then at $37.00. Next support is seen at last week’s low of $35.515 and then at $35.00. Wyckoff's Market Rating: 7.5.
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